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Consider an economy with two goods: food (F) and drink (D). The typical consumer's preferences are summarized by the utility function: U(F ,D) = F1/2D12

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Consider an economy with two goods: food (F) and drink (D). The typical consumer's preferences are summarized by the utility function: U(F ,D) = F1/2D12 where F is the calories (in hundreds) of food consumed in a day and D is the ounces of drink consumed in a day. The typical consumer sets aside $100 to spend on food and drink per day. The price of food is $3 per hundred; the price of drink is $1 per ounce. a) (5 points) On a graph with food on the x-axis and drink on the y-axis, draw the budget constraint. What is the slope of the budget line? b) (5 points) On the same graph draw an indifference curve that goes through the point representing the optimal consumption bundle. Label the optimal bundle. Without doing any calculus, what is the value of the Marginal Rate of Substitution between food and drink at the optimal consumption bundle

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